Aldi’s viral sensation, the Specially Selected Cairanne, made its highly anticipated return last week – at the jaw-dropping price of £3.49, down from its usual £8.49. While shoppers might celebrate the substantial 58% discount, questions are being raised about the sustainability of offering wines at such low prices. The Cairanne, a southern Rhône red blend of Grenache, Syrah, Mourvèdre and Carignan, was well received upon its debut last year. It sold out in just four days after Jane MacQuitty of The Times called it “Aldi’s Christmas present to the nation”. This year’s pricing has sparked curiosity and debate. With VAT and Alcohol Duty accounting for no less than £2.80 of each bottle sold, and additional costs such as bottling, shipping, and production to consider, it seems Aldi is selling the wine at a loss. Promotions like this are a hallmark of the retail sector, where Nielsen data reveals six in ten wines are sold at a discount. Yet, the sheer scale of this markdown raises eyebrows. Is it sustainable? Selling high-quality wine at rock-bottom prices may drive volume but could also pressure producers to cut costs in ways that compromise quality or strain resources. The Cairanne’s blend, which has won awards in the past, suggests significant effort and cost went into its vinification. Further complicating the picture is Scotland’s minimum unit pricing (MUP) policy, which prohibits the sale of wines below 65p per alcohol unit. With the Cairanne’s 14% ABV, at 750ml the wine cannot legally be sold for less
This Article was originally published on The Drink Business - Wine